Chunghwa Telecom's Q2 revenue drops 4.6% on declining mobile business, handset sales

Friday 31 July 2020 | 09:46 CET | News
Chunghwa Telecom saw its total revenues for the second quarter of 2020 decrease by 4.6 percent to TWD 47.81 billion. Mobile communications revenue for the second quarter fell 7.8 percent year-on-year TWD 21.10 billion. This was mainly due to the decrease in handset sales revenue and the decrease in mobile service revenue resulted from market competition, VoIP substitution, as well as the impact of COVID-19 on roaming revenue, the company said.

Internet business revenue for the second quarter of 2020 rose 1 percent to TWD 7.43 billion. Domestic fixed revenue for the second quarter of 2020 decreased by 1.2 percent year-on-year to TWD 15.69 billion, mainly due to the decrease of local and DLD service revenue primarily driven by the increased mobile and VoIP substitution. International fixed communications revenue plunged 28.6 percent to TWD 2.18 billion.

Income from operations for the second quarter of 2020 increased by 3 percent to TWD 10.61 billion. Net income was flat at TWD 8.57 billion, while basic earnings per share was TWD 1.10. Second-quarter EBITDA climbed 1.4 percent to TWD 19.37 billion, while EBITDA margin was 40.52 percent, compared to 38.13 percent in year-earlier period. 

Chunghwa Telecom ended June with cash flow from operating activities of TWD 13.17 billion, which represents a decline of 17.5 percent year-on-year, mainly due to the increase in accounts receivable. Cash and cash equivalents plunged 47.6 percent year-on-year to TWD 19.17 billion at 30 June 2020. The decrease was mainly attributable to the payment of concession fees for the 5G frequency spectrum auction, which was partially offset by the increase in short-term bills payable, the company said.

Chunghwa ended June with 3.62 million FTTx subscribers, accounting for 82.8 percent of the company's total broadband users. The number of subscribers signing up for speeds of 100Mbps or higher increased by 11.5 percent year-on-year, reaching 1.67 million. The number of HiNet broadband subscribers fell 1.6 percent year-on-year to 3.60 million at 30 June 2020.

The company also had 11.09 million mobile subscribers at 30 June 2020, representing a 4.6 percent year-on-year increase. The operator’s fixed-line subscriber base topped 10.03 million subscribers at the end of the second quarter of 2020. 

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Categories: Mobile & Wireless
Companies: Chunghwa Telecom
Countries: Taiwan
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